2023-04-28-港交所-南方Ａ５０_南方Ａ５０－Ｒ_截至二零二二年十二月三十一日止的经审核账目_45页_790kb

CSOP FTSE China A50 ETF Summary

Core Information

• Fund Name: CSOP FTSE China A50 ETF
• Fund Type: Sub-fund of the CSOP ETF Series, an umbrella unit trust established in Hong Kong
• Launch Date: 23 August 2012
• Stock Codes:
  • RMB Counter: 82822
  • HKD Counter: 02822
• Index Benchmark: FTSE China A50 Index
• Investment Strategy: Primarily full replication, with the possibility of using representative sampling or financial derivatives up to 15% of NAV
• Manager: CSOP Asset Management Limited
• Trustee: HSBC Institutional Trust Services (Asia) Limited

Key Financial Highlights (Year Ended 31 December 2022)

Net Asset Value (NAV)

• Dealing NAV per unit: RMB11.9264
• Units Outstanding: 767,500,000
• Total Assets Under Management (AUM): Approximately RMB9.2 billion

Performance

• FTSE China A50 Index Return: -15.21%
• CSOP A50 ETF NAV Return: -18.21%
• Performance Difference: Due to dividends, fees, and expenses including dividend tax

Comprehensive Loss

• Total Comprehensive Loss for the Year: RMB1,779,304,329
• Net Assets Attributable to Unitholders at Year-End: RMB9,200,966,716

Key Audit Matters

• Investments and Derivative Financial Instruments:
  • Comprised of listed equities and unlisted funded total return swaps
  • Total investments: RMB8,371,953,444
  • Total derivative financial instruments: RMB821,525,550
• Audit Procedures:
  • Confirmed existence and valuation through direct confirmations and external pricing comparisons
  • No material exceptions found in testing

Financial Statements Overview

Statement of Financial Position

• Total Assets (2022): RMB9,263,969,947
• Total Liabilities (2022): RMB63,003,231
• Net Assets Attributable to Unitholders (2022): RMB9,200,966,716
• Total Assets (2021): RMB10,394,765,408
• Total Liabilities (2021): RMB12,256,813
• Net Assets Attributable to Unitholders (2021): RMB10,382,508,595

Statement of Comprehensive Income

• Total Net Loss: RMB1,631,530,579
• Total Operating Expenses: RMB121,536,843
• Loss Before Taxation: RMB1,753,068,310
• Taxation: RMB26,236,019
• Total Comprehensive Loss: RMB1,779,304,329

Statement of Changes in Net Assets

• Net Increase from Unit Transactions: RMB802,287,450
• Distribution to Unitholders: RMB204,525,000
• Net Assets at Year-End: RMB9,200,966,716

Statement of Cash Flows

• Net Cash Used in Operating Activities: RMB572,406,734
• Net Cash Generated from Financing Activities: RMB601,096,854
• Net Increase in Cash and Cash Equivalents: RMB28,690,120
• Cash and Cash Equivalents at Year-End: RMB69,085,514

Tax Treatment

• Capital Gains Tax (CGT):
  • QFI investors in the PRC are exempt from CGT from 17 November 2014
  • The Manager did not make provision for withholding tax after this date

Fund Structure and Operations

• Sub-Fund Status:
  • Launched on 23 August 2012
  • Listed on SEHK (RMB: 28 August 2012, HKD: 8 November 2012)
  • JDR listed on TSE on 27 February 2013, delisted on 9 June 2021
• Trust Structure:
  • The Trust has 11 sub-funds as of 31 December 2022
  • Two new sub-funds (Bitcoin and Ether Futures ETFs) were launched on 14 December 2022
  • One sub-fund (MSCI China A Inclusion Index ETF) was terminated on 24 March 2023

Manager and Trustee Responsibilities

• Manager Responsibilities:
  • Prepare financial statements that give a true and fair view
  • Ensure compliance with the Trust Deed and SFC Code
  • Maintain internal controls and manage the fund in accordance with the Trust Deed
• Trustee Responsibilities:
  • Ensure the Sub-Fund is managed in accordance with the Trust Deed
  • Safeguard the fund's assets and rights
  • Report if the Manager fails to manage the fund properly

Independent Auditor's Report

• Auditor: PricewaterhouseCoopers
• Opinion: The financial statements give a true and fair view in accordance with HKFRSs
• Independence: Confirmed in accordance with HKICPA's Code of Ethics
• Key Audit Matters:
  • Existence and valuation of investments and derivatives
  • Auditing procedures included direct confirmations and external pricing comparisons

Summary of Unit Transactions

Conclusion

The CSOP FTSE China A50 ETF is a physical ETF tracking the FTSE China A50 Index, with a full replication strategy. It has a strong structure with independent audit and compliance with regulatory requirements. Despite a negative performance year, the fund continues to operate with a clear investment objective and is managed by a reputable manager and trustee.